74 State, the boutique hotel that opened in 2007 to great fanfare as a sign of the resurgence of downtown Albany, has new owners after years of limbo.

It will be run as a "limited service" hotel — without food or beverage service. The hotel's restaurant, Bistro/Bar at 74, has closed.

"It's under new management, and unfortunately, they phased that out," one employee said Friday.

Visions Hotels, a hotel management and development company based in Corning that owns about 20 upstate hotels, will manage 74 State, which has been acquired by an affiliate company called Albany Lodging Group LLC.

Rakesh Patel, vice president of operations for Visions Hotels, said the company does not operate bars or restaurants in the "majority" of its properties.

"That's the model that we use," Patel said. He said the food and beverage employees were let go this week.

He said the company decided to buy 74 State because of its location and its place in a market "that we believe has good growth potential."

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Just a few years after opening, 74 State ran into financial problems from its connection with several investment funds operated by McGinn, Smith & Co., the Albany-based brokerage firm whose founders are now serving lengthy federal prison sentences for securities fraud.

The hotel's major lender, CIT Lending Services Corp., foreclosed on the property and eventually acquired it for $5 million.

The property was recently sold to Albany Lodging Group after being held for more than a year, although the purchase price has not yet been publicly disclosed.

All the hotels operated by Visions Hotels are "branded" hotels under Comfort Inn, Best Western, Candlewood Inn or other names, and Rakesh Patel says that it's possible that 74 State will be re-branded in a similar fashion. It's currently considered part of the Ascend Collection by Choice Hotels

"We're looking to upgrade the hotel," Patel said.

He said that Visions Hotels recently moved into Pennsylvania — its first foray outside New York state — with a hotel in Sayre, Pa.